KBR downgraded to Sector Weight from Overweight at KeyBanc

KeyBanc downgraded KBR (KBR) to Sector Weight from Overweight without a price target after the Department of Defense formally terminated KBR’s HomeSafe program for cause last Wednesday. The firm believes that for investors to appreciate KBR’s discount valuation, they “needed a defensible rebasing” of the long-term outlook. The current market sentiment is “not one to get behind an uncertain outlook even if the stock is inexpensive,” the analyst tells investors in a research note. KeyBanc reduced estimates, but is “unconvinced that further downside estimate revisions are not pending.” It cites continuing uncertainty for the downgrade.